Jampm corporation common stock has a beta b of 06 the


J&M Corporation common stock has a beta, b, of 0.6. The risk-free rate is 5%, and the market return is 9%.

a. Determine the risk premium on J&M common stock.

b. Determine the required return thatJ&M common stock should provide.

c. Determine J&M's cost of common stock equity using the CAPM.

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